03 December 2010
Whether dividend declared by a co-operative society is exempt in the hands of receiver? Does the co-operative society have to pay dividend distribution tax on the dividend distributed? If yes, at what rate ddt is to be paid?
03 December 2010
Yes, afa my knowledge is concerned, such dividend is exempted in the hands of reciever and tax on such profit distribution is paid by society.... But mind it here, dividend can b paid only to the member of society, and such amount shud b paid only after transferring 1/4 of profit to reserves......
03 December 2010
Not exempt in the hands of shareholders since such dividend is not covered in section 10(34). Co-op.Society need not pay dividend distribution tax since it is applicable only for domestic company as defined in section 2(22A).
CAclubindia
